Clients’ Protection Fund Board

Nancy Marie Reed, Chair

The Clients’ Protection Fund was established in 1976 to make monetary awards to people who have suffered financial losses because of the dishonest conduct of Virginia lawyers. The fund is managed by a fourteen-member board appointed by the Virginia State Bar Council.  Board members investigate all petitions from clients for payments from the fund. The board hears each petition and determines the amount of loss.

            As of July 1, 2017, twenty-three (23) claims were pending from the previous year. In FY 2018, fifty-three (53) new petitions were received. The total amount paid during 2017-2018 was $103,130.58 representing twenty-seven (27) claims. The board denied fifteen (15) petitions, and eleven (11) petitions were rejected for not meeting the CPF rule requirements. As of June 30, 2018, there were twenty-three (23) pending claims. The board reviewed and investigated fifty-three (53) claims during the year. 

            The fund began the fiscal year on July 1, 2017, with a cash balance of $8,911,684.  The Clients’ Protection Fund $25 assessment from all active attorneys totaled $813,060.  Interest income, net of bank service charges for the fiscal year, totaled $138,161.  The fund received restitutions from attorney general’s collections, debt set-off, and individual restitutions in the amount of $10,357 net of attorney’s fees for collection services. As of June 30, 2018, the cash balance in the fund was $9,765,666.

The board is to be commended for the many hours spent investigating and deliberating claims, and for the work of its various committees including the public awareness and strategic planning committees. 

By Order entered September 28, 2017, and effective July 1, 2018, the Supreme Court of Virginia reduced the amount of the assessment paid by bar members from $25 to $10.  In addition, effective July 1, 2018, the General Assembly extended the sunset provision of Va. Code Section 54.1-3913.1, which authorizes the statutory assessment for the fund, from July 1, 2020 to July 1, 2023.

Appreciation is extended to Senator Richard Stuart who sponsored the CPF bill (SB 210). Finally, appreciation is extended to retiring board members Nancy Marie Reed and David R. Ruby after their years of service on the board. 

The board welcomes Melissa Walker Robinson from the eighth disciplinary district and Charles Franklin Hilton as new members for fiscal year 2018-2019.

Updated: Aug 02, 2018